How Does a Multi-Signature Wallet Enhance the Security of a DAO’s Treasury?

A multi-signature (multisig) wallet requires a predefined number of private keys (signatures) out of a total number to authorize any transaction. This prevents any single person or entity from unilaterally draining the treasury.

By distributing the keys among multiple, trusted community members, the multisig wallet adds a critical layer of decentralized security and checks and balances.